XML 36 R12.htm IDEA: XBRL DOCUMENT
v3.19.1

Biological assets and inventory | 12 Months Ended
--- | ---
Dec. 31, 2018
Text Block1 [Abstract] |
Biological assets and inventory |
7. | Biological assets and inventory
(a) | Biological assets |  |  |  |  |  |  |  |  |  |  |
The Company's biological assets consist of cannabis plants. The changes in the carrying amounts of the biological assets are as follows:
|  |  | 2018 (Note 6) |  |  | 2017 (Note 6) |
Biological assets - beginning of year |  | $ | 3,722 |  |  | $ | 1,795 |
Capitalization of production costs |  |  | 7,145 |  |  |  | 3,983 |
Unrealized change in fair value of biological assets |  |  | 11,568 |  |  |  | 7,637 |
Transferred to inventory upon harvest |  |  | (13,361 | ) |  |  | (9,693 | )
Biological assets - end of year |  | $ | 9,074 |  |  | $ | 3,722 |
As of December 31, 2018, it is expected that the Company's biological assets will ultimately yield approximately 6,303 kg of dry cannabis (2017 - 1,695 kg). As at December 31, 2018, the Company has 46,004 plants (2017 - 7,353 plants) classified as biological assets.
The Company measures its biological assets at fair value less costs to sell. This valuation is based on the expected harvest yield (in grams) for plants currently being cultivated, adjusted for the expected selling price less post-harvest costs attributable to bringing a harvested gram of cannabis to a saleable condition and ultimate sale (on a per gram basis). The Company accretes the fair value of each cannabis plant on a straight-line basis over the expected growing cycle. As at December 31, 2018, the plants were on average 6 weeks (2017 - 7 weeks) into the growing cycle 37% complete (2017 - 46%) and were ascribed approximately 37% (2017 - 46%) of their expected fair value at harvest date.
(b) | Inventory
Inventory as at December 31, 2018 consisted of the following:
| 2018 |  |  | 2017 |
| kg |  | $ |  |  | kg |  | $ |
Dry cannabis |  |  |  |  |  |  |  |  |  |  |
Finished goods | 187 kg |  | $ | 972 |  |  | 815 kg |  | $ | 6,145 |
Work-in-process | 1,789 kg |  |  | 7,733 |  |  | 243 kg |  |  | 1,630 |
|  |  |  | 8,705 |  |  |  |  |  | 7,775 |
Cannabis oils |  |  |  |  |  |  |  |  |  |  |
Finished goods | 115 kg |  |  | 656 |  |  | 18 kg |  |  | 332 |
Work-in-process | 220 kg |  |  | 1,250 |  |  | nil kg |  |  | - |
|  |  |  | 1,906 |  |  |  |  |  | 332 |
Raw materials | (i) |  |  | 171 |  |  | (i) |  |  | 183 |
Supplies and consumables |  |  |  | 802 |  |  |  |  |  | 126 |
|  |  | $ | 11,584 |  |  |  |  | $ | 8,416 |
(i) | Raw materials consisted of 0.267 kg (2017 - 0.288 kg) of seeds held by the Company as at December 31, 2018.
As at December 31, 2018, the Company held 29 kg (2017 - 4 kg) of dry cannabis and 4 kg (2017 - 1 kg) of cannabis oils as retention samples. These samples are recorded at a value of $nil on the consolidated statements of financial position as they are not saleable.
7. | Biological assets and inventory (continued)
(c) | Direct and indirect cost allocations
The direct and indirect costs related to biological assets and inventory are allocated as follows. The allocation basis was consistent for the years ended December 31, 2018 and 2017, unless otherwise specified.
Nature of cost | Allocation basis
Consumables (insect control, fertilizers, soil) | 100% allocated to production costs; incurred to support plant growth
Labour costs (including salaries and benefits) | Allocated based on job descriptions of various personnel; 30% allocated to processing costs; 40% allocated to production costs; 30% allocated to operating expenses (2017 - 20%; 70%; and 10%; respectively)
Supplies and small tools | 80% allocated to production costs; 20% allocated to processing costs
Utilities | Allocated based on estimates of usage, 10% allocated to processing costs; 90% allocated to production costs
Property taxes, depreciation, security | Allocated based on estimates of square footage, 20% allocated to processing costs; 50% allocated to production costs; 30% allocated to operating expenses
Packaging costs | 100% allocated to processing costs
(d) | Significant inputs and sensitivity analyses
The Company has made the following estimates related to significant inputs in the valuation model:
Significant inputs | Allocation basis
Net selling price per gram | Estimated net selling price per gram of dry cannabis based on historical sales and anticipated prices, after adjustment for excise taxes
Harvest yield per plant | Expected grams of dry cannabis to be harvested from a cannabis plant, based on the weighted average historical yields by plant strain
Stage of growth | Weighted average plant age (in weeks) out of the 16 week growing cycle as of the period end date
Processing costs per gram | Estimated post-harvest costs per gram to bring a gram of harvested cannabis to its saleable condition, including drying, curing, testing and packaging, and overhead allocation; estimated based on post-harvest costs incurred during the period divided by number of grams processed during the period
Selling costs per gram | Estimated shipping, order fulfillment, and labelling costs per gram; calculated as selling costs incurred during the period divided by number of grams sold during the period
Equivalency factor | Estimated grams of dry cannabis required to produce one milliliter of cannabis oil; estimated based on historical results
Mass multipliers | Estimated multiples of crude extract and isolate mass in diluted cannabis oil products
These inputs are level 3 on the fair value hierarchy, and are subject to volatility and several uncontrollable factors, which could significantly affect the fair value of biological assets in future periods.
7. | Biological assets and inventory (continued)
(d) | Significant inputs and sensitivity analyses (continued)
The following table quantifies each of the significant unobservable inputs described above and provides a sensitivity analysis of the impact on the reported values of biological assets and inventory. The sensitivity analysis for each significant input is performed by assuming a 5% decrease in the input while other significant inputs remain constant at management's best estimate as of the period end date.
|  |  |  | Increase (decrease) as at December 31, 2018 |  |  |  |  | Increase (decrease) as at December 31, 2017 |
| As at December 31, 2018 |  | Biological assets |  |  | Inventory |  |  | As at December 31, 2017 |  | Biological assets |  |  | Inventory |
Net selling price per gram | $5.58/g |  | $ | (673 | ) |  | $ | (640 | ) |  | $8.50/g |  | $ | (227 | ) |  | $ | (443 | )
Harvest yield per plant | 137 g |  |  | (446 | ) |  |  | - |  |  | 182 g |  |  | (181 | ) |  |  | - |
Stage of growth | 6 weeks |  |  | (446 | ) |  |  | - |  |  | 7 weeks |  |  | (181 | ) |  |  | - |
Processing costs per gram | $1.98/g |  |  | 175 |  |  |  | 65 |  |  | $0.82/g |  |  | 22 |  |  |  | 9 |
Selling costs per gram | $0.43/g |  |  | 52 |  |  |  | 50 |  |  | $0.97/g |  |  | 227 |  |  |  | 443 |
Equivalency factor | 0.3 g/mL |  |  | (45 | ) |  |  | 104 |  |  | 0.3 g/mL |  |  | (1 | ) |  |  | (17 | )
Mass multipliers | 30x - 50x |  |  | (5 | ) |  |  | (24 | ) |  | n/a |  | n/a |  |  | n/a |

X
- Definition The entire disclosure for biological assets, agricultural produce at point of harvest, and inventory. + References No definition available. + Details
Name: | cron_DisclosureForBiologicalAssetsAgriculturalProduceAtPointOfHarvestAndInventoryExplanatory
Namespace Prefix: | cron_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block1 [abstract] + References No definition available. + Details
Name: | cron_TextBlock1Abstract
Namespace Prefix: | cron_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration